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tv   FOX Business After the Bell  FOX Business  November 19, 2012 4:00pm-5:00pm EST

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david: once again from the high was 12786. we are above the high, trading at the end of the trading day. the 200 range for the dow. this is a good day. one good day that we don't want to miss. not a good gain for the dow. the nasdaq is up 2.2% on the day. a huge day for the market, you can under estimate. people like sam stovall and others about the market was ready to pop. indeed, they were right. this is healthy. about 2% of the nasdaq. liz: the volume is down. 7%. nonetheless, oil is rising to a one-month high today. the move is helping. the components -- they have big
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drillers. 3.75% move there. david: they have some good news in the homebuilding front today. lifting a lot of good news for the homebuilders. although there were some that were down. let's take a look at the big mover in that sector, which was this one. if you look at the one-week chart, you realize that we have barely been making up for lost ground. you don't want to underestimate hovnanian. the president has been talking with congressional and business leaders giving input on solving the nation's fiscal problems. we are going to talk about our own fiscal summit as we have three small business owners from three very different businesses who are going to be here to talk about what they need to grow. everyone saying that small business has to grow. it is the heart of the american economy. we are going to ask john
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o'connor, kevin maloney and 7-eleven store owner patricia orzano in. liz: the guy on your screen is talking about deals. coming up come an exclusive look at it exclusive company called intralinks. where those deals are being made, and will make some pop. david: we will show you what drove the markets today with today's data download. stocks rallying as investors looking for signs of a compromise. the dow jones ending up triple digits near session highs. all 30 dow components closing in the green. today we be's balance push things out of correction territory. materials and technology were
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the top performers. the s&p sectors, the utilities did lag. it's .5 years in november, national association of homebuilders index posing as increase. existing home sales jumping 2.1% in october to a seasonally adjusted rate. 1.9 million. liz: jim haugland and john brady. they are going to talk about the average for the month. we can't get too hyped up about this. what can we get excited about? when you see that told you that this looks good and significant?
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>> there were two things. there was a tremendous amount of recovery today. these equity index futures closed on their highs for the day. likewise, there was a large allocation out of the treasury. the long end of the curve. those capital flows, not just stocks, but commodities like oil and gold. with a lower dollar and yen, in the global community, it is now stepping forward after a news innuendo. suggesting that things will get done. things are really starting to have an ability to go further. especially after ben bernanke speaks tomorrow. speaking about qe-4. david: maybe it is a little bit of both, fiscal and monetary balance. what will happen when ben bernanke talks tomorrow, what
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happens with the day? >> if you notice, the market's concern is the beltway. if you notice, the housing data continues to get better. now, fed chairman ben bernanke is going to supercharge it and given the far left lane and he is going to put the pedal to the metal. the fed buying mortgage-backed securities through 2013. now they will buy treasures. long-term yields going lower with the idea to speed up the healing process in the housing market. david: let me just stop you there. how low can they go? you look at 10 years, down well below 2%. how low do you think these treasuries can go for where they are now? >> i think 10 years -- 2%, 30 years, 2.5%. you have a fatter yield curve and bond traders and purchasing
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the durable goods -- that marginal buyer will help the economy move forward in 2013. liz: lets me hope so. as you say, bond yields at about 1.25. what is better? equities or yields? we will ask john brady. now to the big question. david: let's bring in our investment panel. yudi, i want to go to you first. there have been a down movement over the last several weeks. that has led to the market that is down and the whole mood seems to have been in a downward trend. has this changed the move? >> i think so. although, this fiscal cliff and
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the election is pretty much over. congress will be in session. nobody there to give up the bad comments. friday, i agree with john. you know, we have been in a bull market since march of 2009. everything looking at the average, we have seen the bottom of this particular movement. liz: david uses them word mood. talk about that. what does it really mean? >> yes, stock tickers were not market prognosticators.
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if you're going to be in the market, if you think equities create wealth, and we think they do, taking advantage of the volatility and the sentiment. we'll be trying to do the last eight weeks or so, because it has been a pretty turbulent eight weeks, take advantage of the benefit for our clients. find great businesses that more attractive prices that we could have nine, 10, 12 weeks ago. yu-dee chang, i still think there is going to be some taxes would go up. all that, let's just get specific. natural gas is something that a lot of people are agreeing upon. even some of the environmentalist are saying that that is a lot better than coal. you have a specific play on
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natural gas, and that is devon energy. >> the reason most of you agree is because we are seeing concrete data to generate it has been over 22% over the last 12 months. liz: david: a lot of these coal-fired plants are being replaced by natural gas plants. >> absolutely. you can't just turn on a switch and turn it off between natural gas and coal fired gas plants. it takes time. it's also a play on energy. natural gas -- they have been pretty aggressive in purchasing and diversifying themselves among different sources. that is why we like about energy. not just for natural gas, but also as we see, it has reached
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this cyclical low. liz: as we are talking about your sectors, what sectors do you believe are poised to profit? >> we think the u.s. economy, the u.s. consumer, they are collectively in better shape than the world has given us credit for. bottom up, we are focusing on fundamentals and valuations. there has already been a lot of talk. we like financial services, parts of financial services, and the ongoing transformation, really, the u.s. energy superpowers, is a fantastic long-term story. that is where we have found of late more opportunity than not. david: yu-dee chang, there is a technology shift or it a lot of people have been waiting for
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this. the old-timers have been replaced by the new kids on the block. as we shift to mobile devices, tremendous shift that is part of intel. you go for ibm, which is one of the old plays in technology. why are they poised to take advantage of this major tectonic shift? >> don't forget that ibm as recently as five or six months ago made a big play in selling corporate bonds. a two year note at a very low interest rate. 1%. they are taking these billion dollars to take advantage of this. that is why i like them. they are a major conglomerate. i think the business model is actually pretty solid. i also believe that they derive their income from all over the world. which is a little safer vintage.
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that is why i like ibm. they do pay pretty attractive dividends and i think that puts a little bit more on it. at this price point, i actually like it a lot speech you buy the best when they are depressed. we love out here. liz: when companies make deals, you could make big money. the stock prices of acquiring companies rise more than 6% in just five days following the deal. do you want to be an early? we are breaking down how to do that in key areas. >> a very important segment. and both sides of the aisle sounding optimistic that some kind of deal could be here the problem. no details on exactly what is coming together. any kind of compromise possible.
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we are live in washington dc with a live story. liz: and small businesses. whether they want to see when it comes to potential deals. we put together our own small business roundtable to find out what they need from capitol hill. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts,
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which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.
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liz: let's go to the pits of the cme. >> from a technical standpoint, the volume strengthened. the bank of japan poised to issue another round of quantitative easing, european bond spread, i think we will go back to ben bernanke's beach tomorrow on the economy and
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monetary policy. >> we will be listening right here at fox business. you better believe it. liz: let's head back to nicole petallides in the new york stock >> obviously, the first story is one that we have been covering so closely about hostess and 20 and they may be forced to liquidate because of all the problems they have had with unions and such. so we know now that they are now going to go into private litigation. so you're looking at a company here and here it is. they amended and expanded. it gives some financial flexibility. this company wants to step in.
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they could possibly be potential students. this story is intertwined. >> you know somebody is going to buy twinkie. it is just too iconic. david: and the dingdong's. well, leaders on capitol hill sounded more optimistic this weekend. some kind of deal could be reached on the debt crisis. liz: despite the debt crisis, which part of this, rich edson is in washington. which part of you guessing they might be able to assert. >> we have an idea. at lease of a process that they are working on to avert the fiscal cliff, which is hundreds of billions of dollars in tax increases and spending cuts by overhauling entitlements and taxes. negotiators are working on targeting amounts to reduce
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deficits. congress and the details with tax entitlement reform. one possible way to ensure congress acts, a new system of automatic revenue increasing entitlement spending cuts to begin. it is time for both sides to end the brinksmanship. >> it is a process of governing. a dangerous way to force the making of laws. our elected officials must recognize the principle of governing responsibly and it is paramount to their legitimacy. >> both sides say they are open to dealing on entitlements and taxes. the sticking point is the expiring tax rates. families earning more than $250,000 a year, republicans refused back, offering to curb tax deductions for wealthier
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americans. they are coming back to washington dc, at least the principles do after thanksgiving to continue. david: at the very least, everyone should agree to cut the tax code in half. rich edson, good to see you, my friend. liz: the president has been reaching out to big business people on moving our economy forward. coming up, we decided to put together our own summit. small business owners creating more jobs. david: about time that we listen to them. oil traders, should we be worried about supply? might that slowdown or even stock if the conflict gets hotter? find out coming up next
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liz: time for a quick editing. credit card users racking up more debt compared to one year ago. the average credit card debt per borrower in the united states is 4.9% in the third quarter. nearly $5000. the high demand for a nokia phone, the lumia is the second
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best-selling device in the u.s. that according to the amazon sales chart. toys "r" us planning a date online push. watching online sales in china, planning to double the number of stores over the next few years. automakers are also expanding in china. general motors building a second plant. land rover is planning to build its first vehicle in china near shanghai. that is today's speed read. david: intel is not the only company announcing major management changes. take morgan chase have some great news. reporter: that is right. a new chief financial officer. she is being elevated from a cfl from one of the subsidiaries there, and she is going to become the cfl is the current cfl becomes the vice chairman of
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the company. the former head of investment banking at jpmorgan. she will take over and then mr. bumble move into a world where people put on serving top clients in what he says our expertise and experience. again, she will be elevated now, the consumer and community banking business being elevated to the cfl of the parent company jpmorgan chase. david: not a bad day to announce it when all bank stocks are off. oil closing at 115. tensions between israel and palestinian militant in some. liz: let's bring in a guy that has watched the markets for years. phil flynn is the senior market analyst at fox. you also have to look at the
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jump in equities. if some of that positivity that we are seeing that makes a little bit better growth? >> i think it's better growth, to be honest with you. there is no doubt this conflict could today's rallies of about much more. we are back to focusing on the fiscal cliff. we are back to focusing on the possibility of a deal and that means oil demand going forward. you know, in fact, particularly today, oil traders really have to look at the situation of what is happening with egypt. that is why traders were so worried about this potential conflict. he didn't know how the new president in egypt was going to act. well, it looks like he could be asking for a cease-fire with israel. it does take away from the conflict that will go a lot further. david: i have heard from a lot of traders saying if this were a long-term trend, we would see whale of a percent.
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it was a healthy bump today, a couple of percentage points. but it would be much higher, we would be in the 100-dollar per barrel range. if this was a wrong turn trend. once this eases because this it settle back into the low '80s. what you say to that? >> absolutely. if we stop this war was going to happen, we would wind up $10 per barrel today. but the odds are right now we are going to have a cease-fire and it's not going to impact oil shipment at all. what we are looking at right now is economic growth. this is a seasonal bottom for the market today. another thing that drives prices is the reports of cold weather hitting europe right now. the gas oil market and the heating oil market, this market was not alone. this was not all about israel. it was about better economic growth and burning more oil. liz: annuity would be able to freelance back. people get all hyped up.
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but neither israel nor the gaza strip produces oil in any form that is meaningful at all. which brings us to the big question inventory. how historically are we stacking up on supply this point in the united states? >> well, it depends on what you're looking at. if you're looking at oil, we are at the highest level we have been in many years. we have plenty of oil in cushing, oklahoma. we have more coming in every day. that is going to be the movement in recent years. we still have those problems because of hurricane sandy or imports are going to be down. that will dislocate the situation. in the coming weeks you will see a lot more demand out of the east coast as we rebuild new york and new jersey. that will be huge. when we get back to the palestinian area. this is playing out in a weird way for the region. we were very worried that the muslim brotherhood would try to start a war with israel.
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it looks like the new president of egypt is more interested in power than he is ideology. that is a good thing. liz: they will lose money if they do speak you rather than fanning the flames, phil flynt is throwing a little water on it. liz: where is the big deal making taking place? coming up, we show you how. an exclusive look at the country. his research shows hopper deal. david: and corporate executives about our economy. what about the small business leaders? we are holding our own small business, trying to find out what business owners say. what we have to do to keep the economic engine going into raven up to the levels that are historic and enormous for our economy. we will have our summit right here don't forget to log onto
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facebook.com/after the bell. is the president listening to or ignoring small-business? having you ship my gifts couldn't be easier.
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david: last week the president met with ceos of big
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corporations. but he has not yet met with small-business owners who he says are the heart of the economy. we think he has been a little slow to address their concerns. we thought we would start the ball rolling with our own small business forum here. they are here to discuss their biggest concerns. john o'connor, kevin maloney and patricia orzano. good to have all three of you here. patricia, i want to go to you first. what is your biggest concern right now? >> the economy in general. it has been flat. it is not producing enough jobs out there. people are just afraid, discretionary spending is way down. you know, it's been four years that has been downplayed and
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regulations are also a concern. david: we will get to regulations in a moment. you share concerns? >> customers are concerned. they are concerned about their financial condition. they are very reticent. the maintenance business has been nonexistent. we are fixing carts, we are not maintaining them. david: kevin, what are your major concerns? >> you are only as good as your customers are spending, i think most of our customers are standing on the side with her hands in a pocket. david: and what about you?
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>> i don't plan on hiring until i see more customers coming in the door. patricia, what regulations might be preventing you from hiring more people right now? all the energy regulations. it's everyone around us, this administration that would cause me to reduce my employees again. david: this is something that would make it easier for businesses to unionize. >> i would be forced to provide contracts. my employees are like family.
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i have people there 10 years, 12 years, 15 years. they are like family. if i was forced to negotiate contracts with them or provide them with benefits, you are hitting the bottom of the tank. david: another thing is obamacare. whether they would be forced to pay more in insurance costs. is that a concern of yours as well? >> yes, i want to do what is right for my guys. i want to do what is right for my employees. right now, i don't know. do i keep paying increase in health care costs? i just don't know what to do but i want to do what is right for my guys. david: are you concerned with small-business and the small-business sector? >> to create six out of every 10 jobs, we are responsible for about half of the nations cdp,
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and we are not at the nations table with everyone else discussing how to improve the economy and what to do going forward. that is very disappointing. and i think he is still recovering from the you did not build that remark. that's an awful lot of small-business owners. david: patricia, it is that remark bother you? that you didn't go back? >> nothing has been positive. we need tax cuts and tax credits instantly. the paperwork behind it, you have to hire someone. tax cuts are what we need.
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tax cuts to help us with purchasing equipment immediately david: when the president says they have to go up, how does audio? >> it is crippling to small businesses. they don't have this money to spend when you take it out of people's pockets. david: john o'connor, kevin maloney, patricia orzano. a great start. we will try to do more of this and we go on. thank you so much. liz: let's make a deal. coming up, we have the exclusive results of a new survey that will breakdown the top sector for mergers and acquisitions. deals and how you can play them in advance. plus, moviegoers were bitten by the twilight was this weekend. the record ticket sales could
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mean big bucks for one stock in particular. dennis kneale has the story.
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>> i am robert gray with your business free. a fiscal cliff resolution helping to push stocks higher. u.s. stocks being pushed higher. the dow jones up more than 200 points. shares of urban outfitters have been sliding on a disappointing earnings report after the bell. missed estimates by a penny. revenue was up a little bit by $693 million. one bright spot, gross margins for anthropology did expand compared to a year ago. jpmorgan chase has named mary and lake as chief financial officer. she is going to succeed the
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vice-chairman. that is the latest from the fox business network, giving you the power to prosper. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and e expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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liz: follow lesson you can make the some money. we have a new report from a company called transit. jumping 15% year-over-year, asia, particularly china, you may be surprised to see how the u.s. is doing. the vice president, matt porzio joins us. how can you make money through m&a activity? you cannot let this report with the deal flow indicator. what does it show you? >> so at our business, intralinks, we are measuring our
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indicator of deals moving to the critical due diligence stage, often months before they are publicly announced. it is the current indication of deals by sector and region as mentioned. liz: let me guess, the u.s. did not do well? >> all right, the north american market basis, quarter to quarter, 0%, latin america off 5%. aipac bucked the trend going up almost 30% of the quarter. david: liz: asia-pacific looking healthy and strong? >> yes, ebbing and flowing quarter to quarter our deal flow
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indicator shows that tech stocks even in your god it continues to be strong in the middle market tech sector. that is on a global basis. liz: energy has been going well also. >> yes, we saw that normalize and come back to some regular levels in the current quarter. what i can tell you is that dealmakers and energy, our client base is getting ready. that is an inorganic growth market for the long term. liz: a lot of these companies come to bigger the bigger ones want to snap up the littler ones to participate in what could be a significant growth spurt after the health care laws? to absolutely. that is a trend that we have
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seen as well. consolidation happening in that industry. that is also being seen as well. liz: once the stock is acquired, it jumps everyday for about five straight days. >> again, you might do that for a couple of days. the arbitrage funds are in there, often the first ones, you do have to be very careful because they can move very fast. liz: are these the people that would be fine? obviously, no one's going to acquire google. >> yes, if you look at the tech industry, why you have senior of
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not being part of the large tech companies. liz: you have names that are familiar -- are they going to be acquired? >> they are showing the trends. it really really showing that technology is the global deal market. it is not showing any slowdown. liz: good to see you. we know that story. china is really big. thank you, matt porzio. david: investor deals to make you happy. and if you are looking for a box of twinkies? it could cost you a lot more than a box of movie tickets. the hard-to-find treats coming right up.
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liz: lions gate saga from the
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"twilight" series, "breaking dawn." david: is there something more investors are looking for? dennis kneale has a look at the hit making independent studio. >> sometimes life as a public traded company really sucks. lions gate traded down for much of today. the fifth and final film in the "twilight" franchise. closing up in happy% today. the market was up twice as much. the stock had room to fall. it surged up 15% when the company turned in robust earnings. you can see that there and in the past year, the prize of lions gate has warned. it has doubled on hopes for twilight and hunger games.
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even though you think twilight should be up, words once they go from here? the second film in a series of posts a apocalyptic future, kids killing kids in olympic style tournaments, lions gate will come out with a third franchise called divergence. i just talked with alan poole and he says that lions gate could hit $20 per share within a year. it's not about 15. the growing businesses in added plus. they now have the new tv hit nashville. it has charlie sheen's second season of anger management.
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watch this stock, it's not over yet. >> it has already doubled and that is very good be one that's wonderful. i went and saw the new lincoln movie. i'm not a school is the kids. david: i went and saw the new james bond movie. well, key reports hitting the market tomorrow. they could mean big things for your investment. tomorrow's trade coming up. liz: and raking in a handful of cash. stay with us, that's coming up next. [ male announcer ] this is the age of knowing what you're made of. why let erectile dysfunction get in your way? tak to your doctor about viagra. ask if your heart is healthy enough for sex.
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so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the oer ones. so what if we just changed the format altogether isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.
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david: film legend charlie chaplin hat and cane sold for $62,000, that does not seem like a lot. he famously wore the hat in "little tramp." liz: are you eating a twinkie? you might have to cough up some extra dough. they're heading to mediation tomorrow, but for now no hostess twinkies, cupcakes or ho ho's being delivered. you

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